The current normal steam method is called SAGD, Steam Assisted Gravity Drainage. It sounds like the plan is to replace the upper horizontal hole where the steam would be inject with air and a source of ignition. Possibly using the retractable chirp/coil tubing as a control measure. Just guessing of course. No doubt we will find out in time.
Huff & Puff with steam was the original method of producing oil sands when they were too deep for pick and shovel.
I am sure if we went back to some old reports we you will find where it had been stated all the long lead items had been procured for Wyoming. I would suggest they may have been sold off by now. The fact he quickly passed on to the next subject, sounds like it is unlikely to happen. Soon anyway.
If they flow oil, they can talk "P"s before that they can not. Obviously they are aiming/hoping to flow oil, so yes they talk about "P"s, so the proof will be in the pudding.
The 3 Ps normally stand for Proven, Probable and Possible Reserves. I see and it needs to be noted they do refer to Resources. Also, they are yet to prove the Boorthanna through actually goes to 2500m. Even though things seem on track so far, it is the Pre-Permian which is the main unknown and we aren't there yet?
. I can remember drilling a well in the Spencer gulf. Expected TD 12,000ft. The well was to prove that there was a sedimentary basin there. We hit hard rock with the 26" bit, before we had run the BOP, and therefore were not getting any sample returns. After we dulled several bits, they ran 20" casing and the BOP. Once we drilled out the shoe, we got granite returns. Meaning we had hit bedrock at say 1000ft instead of 12,000ft. We packed our bags and went home. Strange things can happen when you drilled area where nobody has drilled before.
I am not saying nothing is there, but many people including management seem to be talking as though we already have buckets of oil at the surface. There is a lot to be proved up first, before the champagne can flow.
LNC Price at posting:
99.5¢ Sentiment: Hold Disclosure: Held
